Stock Code: 002568 Stock Abbreviation: Bairun Shares
Bond Code: 127046 Bond Abbreviation: Bairun Convertible Bonds
Shanghai Bairun Investment Holding Group Co., Ltd.
(No. 558 Kangqiao East Road, Kangqiao Industrial Zone, Shanghai)
Feasibility Analysis Report on the Use of Proceeds from the 2026 Issuance of Shares to Specific Targets
June 2026
To further enhance the scale and quality of whisky aging, seize development opportunities in the domestic whisky market, and strengthen the company's comprehensive competitiveness, the company intends to issue shares to specific targets to raise funds for the Malt Whisky Barrel Aging Expansion Project and the R&D and Testing Center Project. The feasibility analysis of these projects is as follows:
I. Plan for the Use of Proceeds
The total amount of funds to be raised from this issuance shall not exceed 1,305 million RMB (inclusive). After deducting issuance expenses, the net proceeds will be used for the following projects:
| No. | Project Name | Total Investment | Proposed Use of Proceeds |
|---|---|---|---|
| 1 | Malt Whisky Barrel Aging Expansion Project | 136,009.69 | 114,000.00 |
| 2 | R&D and Testing Center Project | 17,325.42 | 16,500.00 |
| Total | 153,335.11 | 130,500.00 |
Unit: 10,000 RMB
Before the proceeds are received, the company may invest its own funds based on the actual progress of the projects and replace them with the proceeds according to relevant legal procedures once they are available. If the actual net proceeds are less than the proposed amount, the company will adjust and determine the specific investment projects, priorities, and amounts within the scope of the investment projects, with any shortfall covered by the company's own funds.
II. Necessity and Feasibility of the Use of Proceeds
(I) Malt Whisky Barrel Aging Expansion Project
- Necessity of Project Implementation
(1) Complying with industry trends, seizing opportunities in domestic whisky development, and consolidating market leadership.
According to the Fortune Business Insights industry report, the global whisky market reached 92.89 billion USD in 2025. Since 2023, whisky has become the largest spirits category by global sales, achieving continuous growth in 2024-2025. As a major consumer of spirits, China's whisky penetration remains low. In 2025, demand in the Chinese market reached 80.24 million liters, a year-on-year increase of 6.4%, showing sustained growth and consumption upgrades. Currently, the domestic market relies on imports, but with the rapid growth of local production capacity, distilleries, and oak barrel reserves, the trend of domestic substitution is emerging.
Guided by the focus on whisky, the company adheres to the original intention of "making China's own whisky." Since its establishment, the Laizhou Distillery has focused on IP development and experiential promotion. With the domestic market expanding, the company's existing barrel aging capacity can no longer meet future demand. This project will effectively expand aging capacity, enhance storage and maturation capabilities, and support the transition from the layout phase to large-scale production.
(2) Expanding the company's whisky base spirit scale and implementing the liquor business strategy.
Following the commissioning of the production lines and aging warehouses, the company's base spirit capacity has been released. However, whisky requires aging to achieve stable quality and flavor. With the company's whisky business in a strategic expansion phase, existing oak barrel reserves are insufficient to match the pace of business growth and brand upgrading.
This project involves purchasing 200,000 oak barrels. By implementing refined management of the aging process, the company will upgrade its aging system from "basic construction" to "large-scale and professional." Expanding high-quality oak barrel resources will ensure quality stability and support the creation of a high-end flavor product matrix.
- Feasibility of Project Implementation